Recently, with the convening of the two National Conferences, the â€œOne Belt, One Roadâ€ related policy has once again become a hot topic, and has been hailed as a new bright spot for Chinaâ€™s opening up and cooperation, and has become a strategic opportunity for corporate transformation and upgrading. As one of the most powerful automobile and equipment manufacturing groups in China at present, Weichai Group provided the best sample for this strategic idea.
Tan Xuguang, deputy to the National People's Congress and chairman of Shandong Heavy Industry Weichai Group, pointed out that the implementation of the "Belt and Road" strategy promoted by China as a new development traction will promote the economic and trade cooperation between China's equipment manufacturing industry and Asia, Africa and Europe. At the same time, the transformation of Chinaâ€™s economy will force technology upgrades, structural adjustments, and business model innovations in equipment manufacturing companies, thereby stimulating our transformation and upgrading and improving development quality and efficiency.
According to industry analysts, leading companies such as Weichai have already begun to deploy globally. In recent years, their technological level has improved and they have cost advantages. In the future, they will greatly benefit from the â€œBelt and Roadâ€ strategy.
Internationalization Strategy: Promoting Enterprise Transformation and Upgrade
It is understood that Weichai is the only company in the country that possesses four major business platforms: complete vehicle, powertrain, luxury yacht and auto parts. In recent years, through the acquisition of Bodu, Weichai has strategically restructured internationally renowned companies such as Ferretti, KION, and Linde Hydraulics to become an international company that operates across industries and industries. Its products are exported to Russia and Iran. Vietnam, Indonesia and more than 110 countries and regions. Under the guidance of the â€œBelt and Roadâ€ strategy, Weichai has also continuously adjusted its development strategy. In overseas markets, it has begun to open up markets by establishing production plants and implementing technology exports in the local market, changing the development model of simple product exports, and gradually The low end of the manufacturing industry has advanced to the high end.
In the process of internationalization, Weichai is making efforts to promote the transition from domestic development to global integration and to promote the competitiveness of the industry through its own transformation and upgrading.
As Tan Xuguang pointed out, the future Weichai must be an internationalized Weichai, a diversified Weichai, an innovative Weichai, and an open Weichai. To achieve this blueprint, transformation and development are the best way.
Currently, Weichai Co., Ltd. under the Shandong Heavy Industry Group is focusing on transforming from general technology to core technology, from manufacturing to service-based manufacturing, from investment-driven to investment-driven dual-transition, from domestic development to global integration, and from product management. Five transformations such as the transition to brand operations.
Internationalization Raiders: Serving "Deeply Cultivating" Overseas Markets
Unlike many companiesâ€™ internationalization strategies that only outline the â€œroadmapâ€ and â€œtimetable,â€ it is difficult to innovate and break through. Weichai has clearly identified overseas markets as an important part of the â€œthree-thirdsâ€ strategy. In 5 to 10 years, the international market share will account for 1/3 of total revenue.
In order to achieve the above objectives, Zhang Jiansheng, head of Weichai International's business, stated: â€œOur overseas subsidiaries serve as a platform for the gradual realization of localization of production, regional management, and internationalization of services. This is a key step for Weichai to expand overseas and expand territory. "" Among them, the internationalization of services is the strong backing of Weichai's "deep plowing" overseas. In order to extend its reach throughout the world, Weichai has initially established a global service system. At present, Weichai has five overseas companies, 30 overseas offices, 6 overseas accessories center libraries, and 240 overseas service outlets. "Weichai's service system extends to all parts of the world, and there are Weichai services where there are Weichai engines."
"If you combine the KION report, overseas revenue will account for 1/3 of the group's total revenue in 2014." Zhang Gengsheng said that even if the most challenging engine market, Weichaiâ€™s overseas share is expected to reach 1/3 of the total in the next three years.
"Only the cost advantage will not become the mainstream, but if the products are good, the service is excellent, and there are price advantages, they will have the upper hand in the competition." Chang Gengsheng, who has been perennial in the international market, frankly stated.
Having seized the main contradiction of internationalization, it has obtained the golden key to open the world market. Weichai Engines, which has the largest domestic market share in domestic heavy trucks , bulldozers, loaders, ship engines, and generator sets, currently account for 10%-15% of total sales in overseas markets. With the adjustment of overseas strategies in the past two years, it will accelerate growth in the coming years.
Smart Power Platform: The Winning Magic of â€œOne Belt and One Roadâ€
The "One Belt One Road" strategy is an opportunity, but it is also a challenge for China's equipment manufacturing industry. Because companies can only take advantage of leading industry development.
In order to better integrate global resources, accelerate the speed of technology-based market transformation, solidify product quality, and optimize service quality, in 2015, Weichai introduced the â€œSmart Power Platformâ€ (POWER+) for resource sharing and win-win development. , open Weichai operations, Weichai technology, Weichai quality, Weichai services, and other wisdom, to meet the needs of our customers to create value with high efficiency, once again to increase productivity for customers.
Weichai's smart power platform includes four systems, such as Weichai's WOS operation system, global R&D community, optimized global supply chain system, and full-life membership-based exclusive service, providing customers with an efficient operating system and strong technical support. The world's most competitive supply chain cluster and perfect service guarantees have enabled the platform to continuously break new ground and become an incubator for new products and new technologies for Weichai engines.
Based on the smart power platform, Weichai will work hand-in-hand with all parties to meet the individual needs of customers, accelerate the speed and efficiency of advanced technology conversion, and develop smarter, more environmentally-friendly powertrain products to make new developments for China's internal combustion engine industry. contribution.
For Weichai, the â€œBelt and Roadâ€ is a familiar examination venue, but it is also an upgraded version of the examination room. Because, with the continuous implementation of the â€œOne Belt and One Roadâ€ strategy, the outsourcing of production capacity will become the â€œnew normalâ€ for equipment manufacturing industry. This puts forward higher requirements for market research, technological innovation, cultural integration and management pattern matching of enterprises. .
However, Tan Xuguang obviously has full confidence in him. As he put it, "There is no doubt that the cause we depend on for survival is still in a boom zone. The era we live in is still a period of promising strategic opportunities." Weichai, in the "area On the road to development, the brilliance has only just begun.
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